Project S requires an initial outlay at t = 0 of $17,000, and its expected cash flows would be $6,000 per year for 5 years. Mutually exclusive Project L requires an initial outlay at t = 0 of $36,500, and its expected cash flows would be $12,900 per year for 5 years. If both projects have a WACC of 13%, which project would you recommend?

Select the correct answer.

a. Both Projects S and L, since both projects have NPV's > 0.

b. Neither Project S nor L, since each project's NPV

c. Project S, since the NPVS > NPVL.

d. Both Projects S and L, since both projects have IRR's > 0.

e. Project L, since the NPVL > NPVS.

Check My Work (3 remaining) B eBook Projects requires an initial outlay att 0 of $17,000, and its expected cash flows would be $6,000 per year for 5 years. Mutually exclusive Project requires an initial outlay at two of $36,500, and its expected cash flows would be $12,900 per year for 5 years. If both projects have a WACC of 13%, which project would you recommend? Select the correct answer a. Both Projects S and L, since both projects have NPV's > 0 b. Neither Projects nori, since each project's NPV = 0 O c. Projects, since the NPVNPVL O d. Both Projects S and since both projects have Rs > 0 O Project I, since the NPV > NPVS